New credit cards have been issued in the Malibu area by a local bank because of possible fraudulent activity.
A Wells Fargo customer said his card was “eaten” by an ATM machine at a local branch in the Cross Creek shopping center. A bank manager told him there was concern of fraudulent use of Malibu account holders’ credit cards.
A bank official said he was not at liberty to speak about the issue because of a possible pending case, but did say that cards “were terminated as [a means of] prevention from other use occurring, affecting accounts in Malibu.”
Secret Service, which handles credit card fraud, said it could not confirm whether there is a case under investigation, as it would jeopardize the case if there were.
Since November 1990, the Secret Service has had concurrent jurisdiction with the Department of Justice to investigate fraud, both civil and criminal, against any federally insured financial institution.
Two major types of fraud in the banking industry today are fraudulent production of negotiable instruments (checks, bonds etc.) using computers, and “access device” fraud, which involves the counterfeiting and fraudulent use of ATM debit cards, credit cards, computer passwords, personal identification numbers (PINs), which are used to access ATMs, credit or debt card account numbers, long distance access codes and computer chips in cellular phones that assign billing.
An agent with the FBI, which also investigates certain types of fraud, said a common way criminals obtain credit information is to place a camera above an area where a card would be used, such as a gas station pump. Not only is the card number recorded, but also the pin number entered by the victim.
The simplest way that account information or actual bank cards is obtained is through postal theft. According to a report on the FBI Web site, sophisticated theft organizations will create portfolios of fictitious identification, including drivers licenses, social security cards, and other materials, in order to use the cards. “Runners” from the groups use the cards until they are reported stolen or are confiscated. These organized groups also take advantage of contacts within credit bureaus to obtain bankcard account information for counterfeiting or telephone order purchasing.
See accompanying box for information on how to protect yourself against fraud.